Unveiling the Potential of CRISPR Therapeutics

CRISPR Therapeutics shares fell by -2.6% during the day's afternoon session, and are now trading at a price of $83.99. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.

CRISPR Therapeutics's Valuation Is in Line With Its Sector Averages:

CRISPR Therapeutics AG, a gene editing company, focuses on developing gene-based medicines for serious diseases using its Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9) platform. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 30.21 and an average price to book (P/B) ratio of 4.08. In contrast, CRISPR Therapeutics has a trailing 12 month P/E ratio of -43.3 and a P/B ratio of 3.57.

When we divideCRISPR Therapeutics's P/E ratio by its expected five-year EPS growth rate, we obtain a PEG ratio of 0.08, which indicates that the market is undervaluing the company's projected growth (a PEG ratio of 1 indicates a fairly valued company). Your analysis of the stock shouldn't end here. Rather, a good PEG ratio should alert you that it may be worthwhile to take a closer look at the stock.

An Excellent Current Ratio and Slight Revenue Growth:

2018 2019 2020 2021 2022 2023
Revenue (k) $3,124 $289,590 $719 $914,963 $1,198 $170,006
Operating Margins -5088% 16% -49296% 41% -56190% -249%
Net Margins -5281% 23% -48521% 41% -54272% -208%
Net Income (k) -$164,981 $66,858 -$348,865 $377,661 -$650,175 -$353,532
Net Interest Expense (k) -$5,485 $20,566 $6,379 $6,003 $22,661 $63,309
Depreciation & Amort. (k) $3,519 $4,725 $9,184 $17,953 $24,172 $20,783
Diluted Shares (k) 51,688 60,234 71,282 80,393 77,747 79,414
Earnings Per Share -$3.44 $1.17 -$5.29 $4.7 -$8.36 -$4.46
Avg. Price $46.43 $44.36 $79.55 $121.04 $61.24 $83.99
P/E Ratio -13.5 36.07 -15.04 24.35 -7.33 -18.83
CAPEX (k) $2,773 $6,684 $18,358 $81,705 $37,188 $14,923
Current Ratio 16.81 17.29 18.21 20.17 15.3 15.83
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.